To determine how the federal tax impacts a biweekly pay of [tex]$740 for a single person claiming 1 exemption, follow these steps:
1. Identify the biweekly wage and number of exemptions:
- Biweekly pay = \$[/tex]740
- Number of exemptions = 1
2. Locate the wage range in the tax table:
- Find the row where the wage falls between \[tex]$740 and \$[/tex]760.
3. Use the correct row and exemption column in the table:
- In the row where wages are between \[tex]$740 and \$[/tex]760, find the column under "1" exemption.
- The tax withheld for a single person with 1 exemption in this wage range is \[tex]$65.
4. Calculate the new biweekly pay after tax withholding:
- Original biweekly pay = \$[/tex]740
- Tax withheld = \[tex]$65
- Biweekly pay after tax withholding = \$[/tex]740 - \[tex]$65 = \$[/tex]675
So, the federal tax decreases the biweekly pay by \[tex]$65, not \$[/tex]62. Therefore, the correct option is not provided in the choices a and b, so additional steps should be taken to accurately reflect the correct impact based on the table.
Given the choices provided do not reflect the correct figure, the correct response should clarify that the biweekly pay decreases by $65.
